SYDNEY, Feb 26, 2025 (BSS/AFP) - One of the world's largest rare earths producers outside China reported slumping net profits Wednesday, pointing to a "challenging" market for the hard-to-source metals used in renewable energy technologies.

Australian miner Lynas Rare Earths digs up and refines so-called "rare earth elements" used in the manufacture of smart phones, wind turbines and electric vehicle motors.

The firm's net profit plummeted 85 percent to US$3.75 million (Aus$5.9 million), full year results for 2024 showed.

"Market conditions remained challenging as rare earths market pricing continued at low levels," the firm said.

"The rare earths market continues to be subject to complex influences."

Although revenue grew eight percent to US$161 million, this was partly offset by the increased cost of production.

The "increased geopolitical focus on rare earths" had complicated the market, Lynas said.

Lynas said China's per kilogramme price for neodymium and praseodymium alloy -- a metallic mix more commonly called "NdPr" -- had dropped from US$56/kg to $49/kg.

NdPr alloy is used to make strong magnets that help power electric vehicle motors and other machines.

Lynas is one of the few non-Chinese firms in a China-dominated market.

It bills itself as the "world's only significant producer of separated rare earth materials outside China".

China controls some 90 percent of the world's rare earth supply and is fiercely protective of its position.

Beijing has banned the export of processing technology that could help rival nations, and has been accused of using state-imposed quotas to control supply.

In an effort to loosen China's stranglehold, the US government has agreed a US$258 million contract for Lynas to build a new refinery in Texas.

Lynas operates the Mt Weld rare earths mine in Western Australia and a major processing facility in Malaysia.